Singapore-based capital accounted for 30% of total foreign direct investments into Vietnam
According to Savills, the SEZ is positioned to profit one of the most from this need due to its reasonable costs and strategic proximity to global ports.
“Over 44% of brand-new FDI funds going into realty manufacturing in 9M2024 engaged in value-added products such as electronics and electrical tools, which perfectly stresses Vietnam’s change up the worth chain”, said John Campbell, executive and head of commercial companies at Savills Vietnam.
Necessity for warehousing and ready-built industrial place has in addition surged due to the nation’s strong shopping sector. Ready-built manufacturing facility and storage facility stock increased 31% y-o-y in 2024, with occupancy rates going beyond 80% in major industrial zones.
Covering the first 9 months of 2024, outbound Singapore-based capital into Vietnam accounted for $9.91 billion (30%) of the $33.2 billion in foreign direct investments (FDI) into Vietnam, according to a market report by Savills.
Another essential development industry for Vietnam is data hubs, generated by the growth of the electronic market in Asia. Savills valued Vietnam’s data centre market at over $917 million, since end-2023. The consultancy projects that this sector might expand to $1.87 billion by 2029, sparked by the demand for cloud calculating, 5G and IoT technological innovations that rely on data centre infrastructure. Vietnam’s high internet infiltration among its neighborhood community will also contribute to this demand.
He adds that foreign financial investments toward Vietnam’s industrial realty market place are concentrated in the nation’s North Economic Zone (NEZ) and South Economic Zone (SEZ). The NEZ consists of provinces like Bac Ninh and Hai Phong while the SEZ covers Ho Chi Minh City, Binh Duong, and Dong Nai.
“As one of Vietnam’s largest international financiers, Singapore has actually contributed to the fast advancement of infrastructure, innovation and services in Vietnam, actively joining numerous fields like real estate, retail, manufacturing and renewable energy,” claims Sally Tan, top handling director and director of client services at Savills Singapore.
Investment into realty manufacturing projects accounted for 63% of FDI in to Vietnam, focus on high value sectors such as electronic devices, automotive pieces, semiconductors, and eco-friendly innovation attracting international financial investment.
